Welcome to EV's point and figures. This blog is dedicated to the use of point and figure charts in technical analysis.

Although P&F first appeared in charts in the 1930's, it is an often overlooked techique for analysing stocks and charts. A poor relation compared to line and bar charts and their range of momentum indicators. Yet few charts provide a clearer picture of the daily battle between bulls and bears for market control.

Like most methods, it should not be used in isolation. It should form part of an analysts 'tool box' and be used with other techniques to help form an overall view.

The charts that appear on this blog and any accompanying comments are purely for information purposes only - my own personal take on where the prices may be heading. They do not constitute investment advice.

Tuesday, April 5, 2011

Oil - up!

These 1x3 charts are currently very supportative for the oil price. The recent price action on the high/low 1x3 shows a clear pattern of the oil price trending higher, pushing through previous levels of resistance. See how those price targets of $104 and $114 were triggered by triple top buy signals, particularly the $114 -in many respects this was a 'quadruple top', as the resistance at $92 is clear for all to see. The price reversed on 3 occasions, got support at $86 twice then finally pushed above that previous resistance at $92. And note also the strong support at $97 recently - three times the market tested this level and on all three occasions the bulls came back in and pushed the price higher. All the targets given are now active and clearly, at this point in time, there are no targets to the downside, active or otherwise. The 1x3 closing chart (which is based solely on the end of day closing level) is similarly supportative to the bullish case. The previously activated price targets of $105 and $104 have been met and we currently have active targets of $114 and $141 in play, the former activated by a triple top buy signal that is clear for all to see. Long term bullish support is in place and until there is a decisive three box reversal and some new (clear) targets to the downside, there is nothing to suggest that the oil price will not continue to grind higher. ''Can't go higher? The hell it can't'', as Jock Ewing used to say..!!